Personal Finance

Tax question on Apha -> Tlry conversion / transaction

  • Last Updated:
  • May 9th, 2021 11:41 am
[OP]
Member
Feb 26, 2017
215 posts
92 upvotes

Tax question on Apha -> Tlry conversion / transaction

I had Apha shares and after the merger, in my investment account there are two separate transactions for the Apha->Tlry conversion: a sell of Apha shares and a buy of Tlry shares.

Even if I am not selling Tlry shares this year, I am wondering if I need to report capital gain on my 2021 tax return due to the sell transaction of Apha shares?
3 replies
Deal Addict
Jul 3, 2007
3392 posts
3722 upvotes
Toronto
Figman2 wrote: I had Apha shares and after the merger, in my investment account there are two separate transactions for the Apha->Tlry conversion: a sell of Apha shares and a buy of Tlry shares.

Even if I am not selling Tlry shares this year, I am wondering if I need to report capital gain on my 2021 tax return due to the sell transaction of Apha shares?
no
Member
User avatar
Nov 3, 2008
288 posts
215 upvotes
National Capital Reg…
Figman2 wrote: I had Apha shares and after the merger, in my investment account there are two separate transactions for the Apha->Tlry conversion: a sell of Apha shares and a buy of Tlry shares.

Even if I am not selling Tlry shares this year, I am wondering if I need to report capital gain on my 2021 tax return due to the sell transaction of Apha shares?
In Non-Registered account, yes, you will have capital gains.

This was covered in circular you should have received.

"Pursuant to the Arrangement, a Resident Holder, other than a Resident Dissenter, will exchange their Aphria Shares for Tilray Shares. Generally, such Resident Holder will be considered to have disposed of such Aphria Shares for proceeds of disposition equal to the aggregate fair market value at the Effective Time of the Tilray Shares received by such Resident Holder under the Arrangement, and will realize a capital gain (or a capital loss) to the extent that such proceeds of disposition exceed (or are less than) the aggregate of the Resident Holder’s adjusted cost base of the Aphria Shares immediately before the time of disposition and any reasonable costs of disposition."
[OP]
Member
Feb 26, 2017
215 posts
92 upvotes
NCR-Manchester wrote: In Non-Registered account, yes, you will have capital gains.

This was covered in circular you should have received.

"Pursuant to the Arrangement, a Resident Holder, other than a Resident Dissenter, will exchange their Aphria Shares for Tilray Shares. Generally, such Resident Holder will be considered to have disposed of such Aphria Shares for proceeds of disposition equal to the aggregate fair market value at the Effective Time of the Tilray Shares received by such Resident Holder under the Arrangement, and will realize a capital gain (or a capital loss) to the extent that such proceeds of disposition exceed (or are less than) the aggregate of the Resident Holder’s adjusted cost base of the Aphria Shares immediately before the time of disposition and any reasonable costs of disposition."
Thank you! That's great info.

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